Question
Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $15.40
Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $15.40 $11.30 $12.10 $11.70 Direct labor 20.50 28.50 34.70 41.50 Variable manufacturing overhead 5.40 3.80 3.70 4.30 Fixed manufacturing overhead 27.60 35.90 27.70 38.30 Unit product cost $68.90 $79.50 $78.20 $95.80 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.90 6.40 5.40 4.50 Selling price per unit $77.20 $94.60 $88.50 $105.30 Variable selling cost per unit $3.30 $2.30 $4.40 $2.70 Monthly demand in units 5,100 5,100 4,100 3,100 The grinding machines are potentially the constraint in the production facility. A total of 54,700 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products?
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